Considering doing a MTR and need advice

[David Leichter]

I am contemplating investing in an out-of-state MTR and I have a ton of questions surrounding whether it's a good idea or not. The property is fairly new (built in 1990) and in a solid B area, where appreciation has been a modest but consistent 5% per year over the last 10 years.  This particular area does not have too many MTRs, though. The property manager said that she thinks there is a market for MTR rentals in this area, and she's gotten a lot of calls requesting it. She said she charges 20% monthly management fee for her MTRs, as well as $6,000 initially (that includes designing, shopping, setting up, and everything involved- whether that is putting furniture together or hiring help to do that, etc.). Furnishings can also cost between $7K-$10K for this 3 bedroom house. 

If this house/area does not end up working out as a MTR, I'd probably pivot to a LTR, in which case i'd barely break even (if that) every month. 

I'm struggling to figure out A) are her rates and charges reasonable and ordinary for this kind of rental, B) whether this makes sense, or even how I should be thinking about this. Never done a MTR before; my other rentals are all traditional LTRs.

Any help/guidance would be appreciated!!!